Demand for Foodservice Single-Use Products Boosted by Surging Off-Premise Dining

The COVID-19 pandemic is causing severe disruption in the nearly $4 trillion global foodservice market:

• As outlets across all industry segments face steep declines in sales volumes due to restrictions on aspects of foodservice, such as dine-in capacity, that have been implemented to contain the virus, many establishments, particularly in the full-service sector, face permanent closure.
• These shuttered businesses are expected to be replaced with new ones as the pandemic recedes and economic activities, including consumer dining habits, return to normal levels in 2021 and beyond.
• Meanwhile, foodservice operators are working to adapt to a market environment where offering options such as digital ordering, curbside pickup, and delivery (such as via DoorDash or UberEats) is increasingly key to long-term growth.

Foodservice single-use product demand to grow in 2020 as off-premise dining takes off

One area of foodservice that’s weathering the storm well is single-use products, global demand for which is expected to rise 3.8% per year to nearly $70 billion in 2024. Despite projected declines in foodservice revenues and a high number of restaurant closures in 2020, demand for these products will register some growth during the pandemic due to a sharp increase in off-premise dining (e.g., delivery, drive-through, takeout).

However, faster growth in 2020 will be restrained by the substantial reduction in foot traffic across foodservice sectors due to voluntary and state-mandated measures to contain the pandemic. This includes establishments such as fast food restaurants that have traditionally focused on takeaway and have continued to operate throughout the pandemic.

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Global Foodservice and Global Foodservice Single-Use Products are now available from The Freedonia Group.